A Chinese government investment fund might eventually make a bid for mining
and drilling company BHP Billiton to address the country's commodities concerns,
said an analyst cited in an Australian newspaper.
Shares of BHP Billiton
trade in two stocks. US shares of Melbourne-based BHP Billiton Ltd. rose 90
cents to US$55.40, while American Depositary Shares of London-based BHP Billiton
PLC rose 32 cents to US$51.15 in afternoon trading. Both equities trade on the
New York Stock Exchange.
The company operates as a single entity and produces crude oil, natural gas,
iron ore, coal, steel, aluminum, diamonds and more. Chinese demand for
commodities has drive prices up recently, as the country's booming economy
continues to expand.
The recently formed US$237 billion Chinese State Investment Co., which aims
to invest overseas, has already spent US$3 billion for a 10 percent stake in private equity firm Blackstone, according to an article on
Australia's Herald Sun Web site.
The stake will give the Chinese group a way to learn how to make private
equity takeovers, Bell Potter research chief Peter Quinton said in the article.
And an upcoming target of any newly acquired expertise could be BHP Billiton,
the article said.